Lottery.com’s Losing Ticket. Purveyors of World’s Biggest Lottery Win Now Facing Very Own Alamo
Lottery.com, the Texas purveyors of the world’s biggest ever lottery win, have drawn a losing ticket.
And the online lottery sales platform, who sold the US$1.3 billion Mega Millions winning ticket to a player in the state of Illinois (£1.06bn/€1.27bn), the richest prize draw in history, is now facing its very own Alamo.
In a statement to the US Securities and Exchange Commission (SEC), Lottery.com, founded in 2015, has finally fessed up to a string of anomalous financial dealings.
These range from overstating its cash holdings by some US$30 million (£24.55m/€29.34m), to owing its own workers US$425,000 in back pay (£347,904/€415,709).
The SEC filing is a legal requirement to warn investors, potential investors and the market at large of a company’s true financial position.
It often precedes a legal move to protective bankruptcy.
Following a corporate massacre, through sackings or resignations, Lottery.com’s Chief Legal and Operating Officer Katherine Lever, has been left manning the Texas fort.
Chief Financial Officer Ryan Dickinson, for example, was fired in early July. CEO Tony DiMatteo resigned days later.
“[We do] not currently have sufficient financial resources to fund [our] operations or pay certain existing obligations, including payroll and related obligations,” said lottery.com in a declaration.
“The company’s inability to pay this amount may result in employees terminating their relationship with the company and/or pursuing legal remedies.
“Since the company’s business is dependent on the efforts and talents of its employees, particularly its developers and engineers, and the provision of ongoing services to customers by its employees, a material loss of its employee base may result in the inability of the company to operate its technology, meet its obligations to customers, the loss of key customer relationships and revenue and claims for breach of contractual obligations.”